Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Singapore Press Holdings — Q1 FY2015 Earnings Presentation
16 slides from Singapore Exchange's earnings presentation, Jan 13, 2015
Slide 1: 1Q FY15 Financial Results
1Q FY15 Financial Results 13 January 2015 1
Slide 2: Group 1Q FY15 financial highlights
Group 1Q FY15 financial highlights 1Q FY15 1Q FY14 Change S$’000 S$’000 % Operating Revenue 307,057 328,475 (6.5) Operating Profit# 102,344 116,873 (12.4) Investment Income 1,682 5,119 (67.1) Profit after taxation 78,120 97,696 (20.0) Net Profit attributable to 69,350 88,815 (21.9) shareholders # Th
Slide 3: Group 1Q FY15 financial highlights: Operating Revenue
Group 1Q FY15 financial highlights 1Q FY15 1Q FY14 Change Operating Revenue S$’000 S$’000 % Newspaper and Magazine 235,651 255,869 (7.9) Property 51,414 50,787 1.2 Others 19,992 21,819 (8.4) 307,057 328,475 (6.5) Newspaper and Magazine • Advertisement revenue fell S$16.0m (8.0%) • Circulation revenu
Slide 4: Group 1Q FY15 financial highlights: Profit before taxation
Group 1Q FY15 financial highlights 1QFY15 1QFY14 Change Profit/(Loss) before taxation S$’000 S$’000 Note % Newspaper and Magazine 77,531 90,008 (13.9) (a) Property 32,233 31,685 1.7 (b) Treasury and Investment (2,854) 752 NM (c) Others (10,920) (3,946) NM (d) 95,990 118,499 (19.0) NM: Not meaningful
Slide 5: Group 1Q FY15 highlights
Group 1Q FY15 highlights Operating Revenue Composition Newspaper and Magazine (S$307.1m) Advertisement Revenue Composition (S$183.0m) 9.5% 16.7% 16.2% 14.2% 23.9% 59.6% 59.9% Advertisements (Newspaper & Magazine) Display Circulation Classified * Rental & Services Others Magazines & Others * Classifi
Slide 6: General softening of advertising market
General softening of advertising market Newspaper Ad Revenue Y-O-Y Growth (%) 5.0% 0.0% -5.0% -7.0% -7.1% -7.4% -7.9% -7.3% -8.0% -10.0% -8.3% -7.8% -8.6% -9.8% -9.1% -10.3% -10.3% -9.5% -10.2% -15.0% 2QFY14 3QFY14 4QFY14 FY14 1QFY15 Display Classified* Total * Classified includes Recruitment and No
Slide 7: Digital sales lifted total circulation copies
Digital sales lifted total circulation copies 500 450 Daily Average Newspaper Circulation 400 350 300 Thousands 250 200 150 100 50 0 The Straits The The New Lianhe Lianhe Shin Min Berita Tamil Times/ The Business Paper/ The Zaobao Wanbao Daily News Harian/ Murasu/ Sunday Times New Paper Berita Tamil
Slide 8: Group 1Q FY15 highlights: Cost Composition
Group 1Q FY15 highlights Cost Composition (S$208.2m) 19.3% 44.6% 13.6% 6.3% 7.7% 8.5% Staff Cost Newsprint Premises Cost Depreciation Other Materials, Production & Distribution Costs Other Operating Expenses 8
Slide 9: Modest growth in staff costs
Modest growth in staff costs Change 1QFY15 1QFY14 % Staff Costs (S$'000) 92,849 91,300 1.7 Average Headcount 4,310 4,322 (0.3) Staff costs grew by S$1.5 million (1.7%) due to acquisition of new businesses and incentives to drive growth and retain staff in a tight labour market. 9
Slide 10: Newsprint prices expected to soften
Newsprint prices expected to soften Average Newsprint Charge-Out Price & Monthly Consumption 700 11,000 650 10,000 611 607 598 586 600 9,000 550 8,416 7,856 8,147 7,847 8,000 500 7,000 450 400 6,000 2QFY14 3QFY14 4QFY14 1QFY15 LHS - Prices (US$) RHS - Ave Mthly Consumption (MT) 10
Slide 11: 1Q operating margin sustained above 30%
1Q operating margin sustained above 30% S$’m 200 50.0% Recurring Earnings# and Operating Margin 180 45.0% 160 40.0% 140 35.0% 120 30.0% 100 25.0% 80 20.0% 60 15.0% 40 10.0% 20 5.0% 0 0.0% 1Q FY11 1Q FY12 1Q FY13 1Q FY14 1Q FY15 Recurring Earnings (S$'m) Operating Margin # This represents the recurri
Slide 12: Property segment maintained a steady performance
Property segment maintained a steady performance Paragon The Clementi Mall The Seletar Mall • Net Property Income (NPI) grew 1.8% to S$37.0 million • Seletar Mall officially opened on November 28, 2014. The retail mall is fully leased and will contribute to the Group’s property business from 2Q FY15
Slide 13: Group investible fund
Group investible fund Group Investible Fund (S$1.9b) • Conservative stance maintained on investment allocation, focused on capital preservation 29.4% 34.3% • Returns are expected to be 6.5% commensurate with low risk- 29.8% return profile to mitigate against volatility Equities Bonds Investment Fund
Slide 14: Leading e-marketplaces for cars and property
We are the leading e-marketplaces for cars and property with our acquisition of SgCarmart and StreetSine 14
Slide 15: Updates on Regional Digital Strategy
Updates on Regional Digital Strategy • The Group will continue to focus its efforts on Mudah.my and Chotot.vn, the leading classified websites in Malaysia Top online classified Largest classified website and Vietnam respectively1 website in Malaysia, with in Vietnam, with monthly monthly page views
Slide 16: Thank you
Thank you Please visit www.sph.com.sg for more information.
Singapore Press Holdings — Q1 FY2015 Earnings Presentation on 6ix